Hints and tips:
...Aaron Milford, chief executive of Magellan Midstream Partners, said that the “opportunity to invest and grow” as a company focused on crude oil and refined products, such as petrol and jet fuel, had become...
...US pipeline giant Oneok is set to buy Magellan Midstream Partners for $18.8bn, creating one of the biggest oil and gas infrastructure companies in North America as consolidation in the hydrocarbon business...
...Energy Transfer’s growth has already been boosted by acquisitions: it announced the purchase of Permian Basin operator Lotus Midstream for $1.5bn in March, and in 2021 it snapped up Enable Midstream Partners...
...The latest deal was the $18.8bn sale of pipeline company Magellan Midstream Partners to rival Oneok this week....
...Now scarcity has thrown a spotlight on their value, intensified by Oneok’s recommended offer for Magellan Midstream Partners at an enterprise value of $18.8bn....
...For pipeline builders — the so-called midstream part of the industry — the peak shale era brought its own wealth of opportunities....
...“You have to invest your way through this energy transition across the full energy ecosystem, in everything from renewable energy, to power, to upstream, midstream and downstream.”...
...For example, Magellan Midstream, an energy MLP, last year paid out only about 71 per cent of its cash flows as dividends....
...Loadings of crude by rail fell to about 115,000 b/d soon after Dakota Access entered service in 2017 but have since surpassed 300,000 b/d, said Ryan Saxton, director of midstream oil at Genscape....
...ICE’s contract is delivered at Houston terminals owned by Magellan Midstream Partners, whose specifications allow oil with a wider gravity band of 36-44 degrees and a sulphur cap of 0.45 per cent....
...Rice Midstream investors will receive 0.3319 shares of EQT Midstream for each share in Rice they held....
...The comments by the chiefs of Energy Transfer Partners, Kinder Morgan and TransCanada underscored how a tactic of addressing climate change by blocking new infrastructure has rattled a midstream energy industry...
...Its first public move was in EQT, a US energy group, where it lobbied the company to split its production and midstream businesses....
...“In the meantime, we will complete well trials, acreage swaps and assess midstream solutions to increase the value, profitability and marketability of our acreage.”...
...Bowing to pressure, Marathon management has promised to sell off midstream assets to MPLX over the next two or three years....
...The structure of the offer made by Enterprise Products, the largest US midstream pipeline company by market value, could not be learned but the people added that it remains interested in a deal for Williams...
...The numbers were made to add up by selling the Sunoco retail business to its affiliate Sunoco LP for $2.2bn, and by issuing units worth $1.1bn....
...Some midstream companies have warned of “counterparty risk” in reference to their less creditworthy customers....
...Similar midstream pipeline companies such as US-listed Kinder Morgan trade on 11 times. Husky itself, an integrated player, is on 10....
...The cheap capacity is evidence of a reckoning taking hold among midstream energy companies, which move, store and process oil and gas....
...And because KMI is a bellwether in the North American midstream sector, the recent declines of its stock and bond prices are reverberating through its peer group, as evidenced by the Alerian MLP Index falling...
...So-called “midstream” companies like Kinder Morgan, which build and operate thousands of miles of pipelines, like to think of themselves as “toll collectors”, immune from cratering oil and natural gas prices...
...Further reading: In Re: El Paso Pipeline Partners, LP Derivative Litigation...
...The two corners at the base are Williams LP and Access Midstream LP, two energy infrastructure MLPs....
...More than 90 per cent of the aggregate enterprise value of MLPs comes from energy logistics companies (so-called midstream and downstream)....
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